Update Current Estimate for Forecasting
Use Case
Even though it’s early in the process, the project controls manager adds estimated pricing for the issue to the current estimate of the project so it can be considered as part of the project forecast.
As an option, you can update your Current Estimate in Control with estmated costs related to the issue. This allows you to include the estimated costs in your Total Forecast.
Ideas on Site
An important consideration for estimating issue pricing is whether to use InEight Control or InEight Change.
One option is to update Current Estimate values directly within the CBS of InEight Control. Because the Project Controls manager can forecast using the Current Estimate forecast method, he can include estimated values that are still pending and not yet approved in the forecast so the forecast is up to date at all times. Then, as the tracking of the issue progresses in InEight Change, the cost items and their estimated values can be auto-updated from InEight Control into the issue in InEight Change. This accounting for issues and scope changes in the forecast early is common for many projects.
For organizations that don’t allow work to be done on a change order until it’s been approved, and therefore don’t want potential changes with estimated costs showing up in InEight Control prematurely, a second option may work better. Instead of initiating the pricing on a cost item in InEight Control, it may be preferred to do all the cost item pricing within InEight Change, ensuring estimated values only show up in InEight Control if the issue becomes a change order and is approved.
Update Current Estimate Values
The steps below assume that the Project Controls team estimates values in InEight Control as early as possible, so they can include the potential costs in the forecast.
Step 1
Let’s assume you have a new cost item you’ve added for additional steel material you’ll need for the issue.
In InEight Control, select Workspaces > CBS, locating the cost item being impacted.
Step 2
Update the cost item’s Current Estimate cost.
This imports the entire cost structure into your Control budget (CBS).
Step 6
You also have an existing cost item you need to update for self-performing the additional steel work.
You can update the Forecast (T/O qty) of the existing cost item.
Forecast Using Current Estimate Values
With your Current Estimate values updated, you can now use the Current Estimate forecast method to project how these potential cost adjustments will affect your forecast.
Step 2
Note that your new cost item related to the issue has a forecast of $0.00, since it is based on the Current Budget and the change is not yet approved.
Step 4
The forecast now includes the cost you estimated.
In this case, the cost item was for material.
If it was for self-performed work, it would include forecasted man-hours as well.